HRA at Hyderabad Rate for Ordnance Factory Medak Employees

HRA at Hyderabad Rate for Ordnance Factory Medak Employees – HRA paid at 30% was reduced to 10% as per Ministry of Finance advice

Joint Consultative Machinery for Central Government Employees has issued a communication on Grant of HRA/CCA at Hyderabad Rates to the Defence Civilian Employees working at Ordnance Factory Yeddumailaram (Medak) and Eddumailaram (Census Town), Medak

The Joint Secretary(Pers.)
Department of Expenditure,
North Block,
New Delhi-110 001

Dear Madam,

Sub: Grant of HRA/CCA at Hyderabad Rates to the Defence Civilian Employees working at Ordnance Factory Yeddumailaram (Medak) and Eddumailaram (Census Town), Medak

Ministry of Finance, Department of Expenditure vide ID No. 2(2)12007/E-li (B) dated 19.02.2007 have informed MoD that the MoD should checkup the matter with the State Government/Local Authorities to confirm whether Yeddumailaram (Medak) and Eddumailaram (Census Town), Medak are two different cities or both are one and the same. It was further clarified that if it happen to be the same city then HRA / CCA is already admissible at Hyderabad rates being part of Hyderabad (UA). Accordingly, Ministry of Defence after consulting the State Government Authorities have issued instructions vide ID No. 6(6)/2005 D (Civ.) dated 16.05.2007 clarifying Yeddumailaram (Medak) and Eddumailaram (Census Town). Medak are one and the same city and accordingly they are eligible for HRA / CCA as applicable to Hyderabad (UA).

Ministry of Finance vide its ID No. 2(2)/2007-E-li(B) dated 01.12.2014 have advised Ministry of Defence that payment of HRA at Hyderabad rates to the employees of Ordnance Factory Yeddumailaram (Medak) and Eddumailaram (Census Town), Medak may be stopped with immediate effect. Accordingly, Ministry of Defence have issued instructions to Ordnance Factory Board to immediately reduce the rate of HRA to the above employees from existing 30% to 10%.

In this regard it is stated that Eddumailaram (Census Town) was declared / treated as Urban (i.e. Census Town) at 2001 Census vide Government of India, Ministry of Home Affairs, Director of Census Operation Letter No. 4646/Census Cell/2001 dated 12.08.2002 (copy enclosed for ready reference) Moreover, as per the publication of Government of Andhra Pradesh regarding concept of Urban Agglomeration defined in Chapter 1 of introduction, concepts and definitions, jurisdictional changes, Rural – Urban Frame Andhra Pradesh in Para 1.3.7 it is clearly mentioned that the Medak District falls within the Urban Agglomeration of Hyderabad (UA).

In view of the above Department of Expenditure is requested to re-examine the whole issue in terms of the supporting documents stated in the Preceding Para and arrange to issue instructions to continue 30% HRA for the Defence Civilian Employees of Ordnance Factory Yeddumailaram (Medak) and Eddumailaram (Census Town), Medak.

This issue may please be considered seriously and urgently since the Defence Production Unit is facing serious industrial unrest owing to stoppage of HRA at par with Hyderabad (UA) rates.